Gundy parts with OSU, resulting in $15M payout

OKLAHOMA CITY — Oklahoma State University owes its long-time football coach as much as $15 million after cutting ties with him, according to his renegotiated contract.

OSU Athletic Director Chad Weiberg said when he met with Mike Gundy on Tuesday to end his employment, the two did not discuss lowering the $15 million buyout that Gundy is guaranteed if he’s terminated without just cause.

The funds for the buyout will come from the general revenue or operating budget, and OSU plans to honor its contractual obligations to Gundy, he said.

Gundy

Gundy is departing the state’s largest university system in the middle of his 21st season and amid a poor record in recent years. OSU has lost 11 of its last 12 games, including most recently to the University of Tulsa. This marks the first OSU loss to the team since 1998.

Weiberg said in a statement that the football program experienced “unprecedented” success under Gundy’s leadership, but the college football landscape has “drastically” changed in recent years.

“This was not something that I thought we would be doing today on this Tuesday,” Weiberg said at a press conference. “I fully expected to beat the University of Tulsa. I expected the results of this season to be different than they’ve been so far. … We have higher expectations than that. So when it just appeared that that was not going to be met, it felt like for the good of the program.”

Gundy was being paid over $6.8 million, a $1 million cut from previous years after his contract was renegotiated in December, according to reporting from The Oklahoman.

He signed a restructured contract in December that makes him eligible for the $15 million buyout should he be terminated in the first three years, according to a copy of his contract obtained by Oklahoma Voice. The new contract was negotiated amid a 3-9 losing season and inflammatory remarks from the coach calling some OSU fans “failures.”

Gundy’s renegotiated contract obligates OSU to pay him in monthly installments for “liquidated damages,” according to his contract. If he were fired in 2028, the number would have dropped to $10 million.

Just causes, as defined in the contract, include insubordination, violation of athletic rules, criminal convictions, conduct affecting the athletic department, improper personal conduct and dishonesty, among other things.

Weiberg said he and OSU President Jim Hess are in “lock step” with this decision.

“This is a decision about what’s best for our football program, our student-athletes and Oklahoma State University and it reflects our unwavering commitment to championship-level football and competing for national success,” Hess said in a statement.

OSU’s offensive coordinator Doug Meacham was named interim head coach while OSU conducts a search for a permanent replacement.

Oklahoma Voice (oklahomavoice.com) is an affiliate of States Newsroom, the nation’s largest state-focused nonprofit news organization, supported by grants and donations. Oklahoma Voice provides nonpartisan reporting, and retains full editorial independence.